Australia’s major telco players are continuing to cede broadband market share to smaller retail service providers, according to a report from the Australian Competition and Consumer Commission (ACCC).
In the watchdog’s most recent NBN Wholesale Market Indicators Report, the wholesale market share of smaller retail service providers increased to 12.6 percent in the quarter ending in June 2022. In comparison, their collective market share was 8.2 percent in the same period in 2021.
Leading the way is Aussie Broadband, which increased its market share to 6.4 percent during the period, up 0.3 percentage points.
“The growth of smaller providers is increasing the competitive tension in broadband markets, and many Australians will see the benefit of that,” ACCC commissioner Anna Brakey said.
“Consumers have a wide range of choice for their broadband retailer, which enables them to choose the product that best suits them.”
The report also revealed Telstra’s market share is down 0.4 percentage points to 43.3 percent, while TPG declined 0.2 percentage points to 23.1 percent. Optus and Vocus each lost 0.1 percentage points, with 13.8 percent and 7.2 percent market share, respectively.
Also in the report, the ACCC said broadband providers have expanded their presence at NBN Co’s 121 Points of Interconnection (POIs), with 17 retail service providers directly acquiring NBN services from the POIs, up from 13 providers in the previous quarter.
“More providers connected at all of the Points of Interconnection means consumers will have a wider range of broadband providers to choose from, no matter where they live,” Brakey said.
Telcos have also increased their Connectivity Virtual Circuit (bandwidth) capacity over the period, with average capacity acquired per user increased from 2.76 Mbps in the previous quarter to 2.84 Mbps in the June quarter.
Overall residential broadband services on the NBN are also at 8.7 million, where three-quarters are on plans of at least 50 Mbps. The speed tier was also the most preferred for 55 percent of Australians but has also decreased from 58 percent in the previous quarter.
“The popularity of the higher speed tiers means that retail competition for these customers is strong, so we recommend that consumers regularly check for new offers or newly discounted deals,” Brakey said.
Earlier this month, the ACCC approved Google's acquisition of cybersecurity vendor and consulting services provider Mandiant. The regulator also secured a win in its court case against Fujifilm Business Innovation Australia, formerly Fuji Xerox Australia, when the Federal Court found the latter had unfair terms in its small business contracts.
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